Hibret Insurance Company S.C. has announced a significant increase in its total gross written premiums, which rose 24.18 percent to 3.42 billion birr for the 2025/26 fiscal year. This growth is attributed to the company's robust expansion across its core insurance underwriting and investment activities. The company's non-life insurance segment remained the anchor of its underwriting portfolio, generating 3.17 billion birr in premiums.
The company's net profit after tax also saw a notable increase, rising 14.5 percent to 965.32 million birr for the 2025/26 fiscal year. This growth was achieved despite a sharp tax increase that weighed on overall earnings and diluted earnings per share. According to the company's Board Chairman, Wondwossen Teshome, this performance represents a resilient achievement amid broader macroeconomic headwinds and dynamic regulatory shifts in the financial sector.
The company's profit before tax climbed to nearly 1.38 billion birr, up from 1.01 billion birr in the previous fiscal year. However, board members noted that profit expansion was heavily moderated by corporate tax obligations. Hibret's tax expenses surged 151.63 percent to 415.11 million birr from 164.90 million birr in the preceding year, primarily driven by recent legislative amendments targeting investment income.
Despite the fiscal squeeze, the board proposed distributing 868.79 million birr in dividends to shareholders, following a mandatory 96.53 million birr transfer to legal reserves. The company's underwriting efficiency produced a 43.39 percent jump in its net insurance service result, reaching 1.10 billion birr. Motor insurance continued to dominate the non-life portfolio, accounting for 63.49 percent of total non-life premiums.
The company's investment activities also performed well, with net investment income growing 32.64 percent to 722.12 million birr. This provided substantial balance-sheet support to the company. During the reporting period, Hibret continued to fortify its capital position, with paid-up capital expanding to 1.88 billion birr by June 2026 and subsequently rising to 1.95 billion birr.
Hibret's physical footprint also expanded through key real estate acquisitions, including a seven-storey commercial building in Bole Bulbula and dedicated operational space in Kazanchis. The company's life insurance operations contributed 196.80 million birr in premiums, while general Takaful operations generated 54.34 million birr. Overall insurance revenue expanded 34.23 percent to 3.14 billion birr.
Engineering insurance registered a sharp 60 percent decline, attributed to a broader slowdown across the domestic construction sector. However, all other non-life classes posted positive growth. The company is on track to meet its shareholder-approved 2 billion birr capital target.
Key points
- Hibret Insurance Company's total gross written premiums rose 24.18 percent to 3.42 billion birr.
- The company's net profit after tax increased 14.5 percent to 965.32 million birr.
- Hibret's tax expenses surged 151.63 percent to 415.11 million birr.
